Car sales across Europe continued to slow as a result of the ending of government subsidies on new vehicles.

Sales in Germany plunged 30% in July compared with the same month a year ago according to industry association VDIK. A total of 237,500 new vehicles were registered during the month. In July 2009, the government's cash-for-clunkers subsidy programme helped boost new registrations by nearly a third, although this was still slightly lower than 2008's figures

Strong exports have allowed German manufacturers to ramp up production but in July, sales outside the country came in at 312,400 vehicles. The slowdown has been reflected across Europe, with new car sales down in July by 26% in Italy, 24% in Spain and 13% in France.

Italy's new car sales totalled 152,752 with Fiat's market share slipping below its target at 29.09%. The company’s new car sales in July were down 35.8% year-on-year at 44,433.